A Question Help Garden House operates a commercial plant nursery where it propagates plants for garden centres throughout the region. Garden House has $6.85 million in assets. Its yearly fixed costs are $584,000, and the variable costs for the potting soil, container, label, seedling, and labour for each plant total $1.65. Garden House's volume is currently 470,000 units. Competitors offer the same quality plants to garden centres for 54.20 each. Garden centres then mark them up to sell to the public for $9 to $12, depending on the type of plant. Requirements Requirements Requirement 1. Garden House's owners want to earn a 10% return on the company's assets. Wh Calculate the target full cost for Garden House. Select the formula labels and enter the amounts 1. Garden House's owners want to earn 10% return on the company's assets. What is Garden House's target full cost? 2. Given Garden House's current costs, will its owners be able to achieve their target profit? Show your analysis. 3. Assume that Garden House has identified ways cut its variable costs to $1.50 per unit. What Target full cost is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. Requirement 2. Given Garden House's current costs, will its owners be able to achieve their targe 4. Garden House started an aggressive advertising campaign strategy differentiate its plants from those grown by other nurseries. Plant City made this strategy work, so Garden House has Calculate Garden House's current total full cost. Select the formula labels and enter the amounts. decided to try it too. Garden House doesn't expect volume to be affected, but it hopes to gain more control over pricing. If Garden House has to spend $94,000 this year to advertise and its variable costs continue to be $1.50 per unit, what will its cost-plus price be? Do you think Garden House will be able to sell its plants to garden centres at the cost-plus price? Why or why not? Total full cost Calculate Garden House s current total full cost. Select the formula labels and enter the amounts. Total full cost Garden House's current total full costs of is v its target full cost. Garden House V meet the owner's profit expectations. Requirement 3. Assume that Garden House has identified ways to cut its variable costs to $1.50 per unit. What is its new target fixed cost? Will this decrease in variable costs allow the company to achieve its target profit? Show your analysis. Calculate the new target fixed cost Target full cost Less: Reduced level of variable costs